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Income Tax (Trading and Other Income) Act 2005

Section 113: Other interpretative provisions

464.This section provides further definitions. It is based on paragraphs 3, 8 and 9 of Schedule 5 to ICTA.

465.Subsection (2)(a) applies if production herds of animals of different species are kept for the same product; for example, a herd of cows and a herd of goats both kept for milk production. Each herd satisfies the definition of production herd. Subsection (2)(a) prevents them being treated as of the same class.

466.Subsection (2)(b) prevents animals of the same species being treated as of the same class if they are kept for different products; for example, one herd of cows kept for milk production and another herd of cows kept for its calves.

467.Subsection (6) clarifies what is meant by “a substantial part of the herd”. This is a question of fact depending on the circumstances. But 20% of the herd will always be regarded as substantial. See Change 32 in Annex 1. The following sections refer to “a substantial part of the herd”.

  • Section 118(1) (sale of animals from the herd);

  • Section 119(1) (sale of whole or substantial part of herd);

  • Section 120(4) and (5) (acquisition of new herd begun within 5 years of sale);

  • Section 122(1) (replacement of part sold within 5 years of sale); and

  • Section 126(1) (slaughter under disease control order).

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